The year 2023 has marked a notable shift in the S&P 500 market, with the rally stalling in August due to the Federal Reserve Chair Jerome Powell’s warning that more monetary policy tightening may be needed to combat inflation. Despite this setback, the S&P 500 boasted nearly 19% year-to-date gains by the end of August, a testament to the resilience of some sectors. The top performers of the year include healthcare stocks with unique catalysts and stocks exposed to the burgeoning field of artificial intelligence technology.
In this dynamic market landscape, we take a look at the 10 best-performing stocks of 2023. These are companies that trade on major U.S. exchanges and boast market capitalizations of at least $1 billion. The list includes a diverse range of companies, from Carvana Co., an online used-car sales platform that experienced a 962.2% total YTD return, to VinFast Auto Ltd., a Vietnamese electric vehicle maker that saw a jaw-dropping peak market cap of $190 billion. We will dive deeper into the factors contributing to their success, and their potential trajectory in the face of a tightening monetary policy.
The Top 10 Performing Stocks of 2023 So Far
The S&P 500 market rally of 2023 witnessed a slowdown in August following a warning from Federal Reserve Chair, Jerome Powell, regarding the need for further monetary policy tightening. Despite this, the S&P 500 reported nearly 19% year-to-date gains at the end of August. Key performers included healthcare stocks with unique catalysts and those exposed to artificial intelligence technology. Here, we present the 10 best-performing stocks of 2023 from companies trading on major U.S. exchanges with market capitalizations exceeding $1 billion.
The High-Flying Performers
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Carvana Co. (CVNA) leads the pack with an impressive 962.2% return. Despite poor business performance, the online used-car sales platform benefited from a social media-driven rally, mirroring the meme stock phenomenon observed in 2021.
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At second place, MoonLake Immunotherapeutics (MLTX) posted a 448.2% return. The clinical-stage biotech firm, investigating a novel nanobody for treating inflammatory diseases, saw its stocks surge following positive mid-stage trial results.
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Third on the list, IonQ Inc. (IONQ), a firm developing quantum computing technology, delivered a 398.2% return. Bullish investor sentiment was driven by the company’s strong revenue growth and raised guidance.
Continuing the Upward Trajectory
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Reata Pharmaceuticals Inc. (RETA), specializing in rare disease treatments, returned 344.8% following FDA approval for its Friedreich’s ataxia treatment and subsequent buyout by Biogen Inc.
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AppLovin Corp. (APP), a software provider for app discovery and monetization, reported a 310.4% return. This rise is attributed to investor optimism over its financial performance and the successful launch of its AI-based advertising engine.
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BridgeBio Pharma Inc. (BBIO), a biopharmaceutical company focusing on genetic diseases and cancers, saw a 292.5% return, driven by positive clinical trial results and its attractiveness as a potential buyout candidate.
Stellar Returns Amid Market Slowdown
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Archer Aviation Inc. (ACHR), an electric vertical takeoff and landing aircraft developer, secured a 272.7% return following a hefty investment from leading players and FAA certification for its aircraft.
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Marathon Digital Holdings Inc. (MARA), one of the largest Bitcoin miners in North America, reported a 267.5% return, riding on the wave of the crypto market rebound.
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Symbotic Inc. (SYM), specializing in supply chain automation using AI, returned 250% due to robust revenue growth and increased investor enthusiasm in AI.
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Lastly, VinFast Auto Ltd. (VFS), a Vietnamese electric vehicle maker, delivered a 232.2% return after experiencing a phenomenal buying frenzy following its debut on the Nasdaq.
Takeaways
The 2023 stock market performance demonstrates the significant influence of technology and healthcare sectors. While some traditional sectors like used-car sales surprised with substantial returns, the role of social media in stock trading continues to be a notable factor. Furthermore, the increasing interest in AI and quantum computing indicates the emergence of new investment avenues. It remains to be seen if these trends continue to shape the landscape of stock market performance in the coming years.
